Advantage Oil & Gas (NYSE: AAV) and Carrizo Oil & Gas (NASDAQ:CRZO) are both small-cap oils/energy companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, profitabiliy, dividends, valuation, analyst recommendations, risk and earnings.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Advantage Oil & Gas and Carrizo Oil & Gas, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Advantage Oil & Gas 0 1 4 0 2.80
Carrizo Oil & Gas 1 5 13 1 2.70

Advantage Oil & Gas presently has a consensus price target of $10.45, suggesting a potential upside of 59.54%. Carrizo Oil & Gas has a consensus price target of $40.94, suggesting a potential upside of 176.82%. Given Carrizo Oil & Gas’ higher probable upside, analysts clearly believe Carrizo Oil & Gas is more favorable than Advantage Oil & Gas.

Valuation & Earnings

This table compares Advantage Oil & Gas and Carrizo Oil & Gas’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Advantage Oil & Gas $156.27 million 7.79 $117.03 million $0.23 28.48
Carrizo Oil & Gas $491.86 million 1.98 $270.84 million ($5.58) -2.65

Carrizo Oil & Gas has higher revenue and earnings than Advantage Oil & Gas. Carrizo Oil & Gas is trading at a lower price-to-earnings ratio than Advantage Oil & Gas, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Advantage Oil & Gas and Carrizo Oil & Gas’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Advantage Oil & Gas 24.83% 3.87% 3.14%
Carrizo Oil & Gas -63.08% -128.17% 4.58%

Risk and Volatility

Advantage Oil & Gas has a beta of 0.97, meaning that its stock price is 3% less volatile than the S&P 500. Comparatively, Carrizo Oil & Gas has a beta of 2.01, meaning that its stock price is 101% more volatile than the S&P 500.

Institutional and Insider Ownership

55.2% of Advantage Oil & Gas shares are held by institutional investors. Comparatively, 89.1% of Carrizo Oil & Gas shares are held by institutional investors. 6.0% of Carrizo Oil & Gas shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Carrizo Oil & Gas beats Advantage Oil & Gas on 9 of the 15 factors compared between the two stocks.

Advantage Oil & Gas Company Profile

Advantage Oil & Gas Ltd. is an intermediate natural gas and liquids development and production company. The Company is engaged in the business of natural gas exploitation, development, acquisition and production in the Province of Alberta. The Company focuses on the development of Montney resource play at Glacier, Alberta in Western Canada. The Company has drilled over 10 Montney gas wells. The Glacier property lies along the Alberta side of the border with British Columbia between Grande Prairie, Alberta and Dawson Creek, British Columbia. The primary zones of interest are within the Triassic Montney and Doig formation siltstones. The Glacier property consists of over 90 net sections of land with Doig/Montney interests. It owns and operates a gas plant located at 5-02-76-12W6. It also holds interest in approximately 20 additional sections of Doig/Montney land rights in the Glacier, Valhalla and Wembley area proximal to its existing land holdings.

Carrizo Oil & Gas Company Profile

Carrizo Oil & Gas, Inc. is an energy company. The Company is engaged in the exploration, development and production of oil and gas from resource plays located in the United States. Its operations are focused in proven, producing oil and gas plays in the Eagle Ford Shale in South Texas, the Delaware Basin in West Texas, the Utica Shale in Ohio, the Niobrara Formation in Colorado, and the Marcellus Shale in Pennsylvania. As of December 31, 2016, the Company’s proved reserves of 200 million barrels of oil equivalent (MMBoe) were 64% crude oil, 12% natural gas liquids (NGLs) and 24% natural gas. As of December 31, 2016, it operated approximately 94% of the wells in Eagle Ford in which it held an interest. As of December 31, 2016, it held an average interest of approximately 85% in these operated wells. As of December 31, 2016, it owned leases covering approximately 309,200 gross (179,179 net) acres in the Eagle Ford, Niobrara, Utica and the Delaware Basin areas.

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